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EUR/USD: Additional accommodative monetary policy guidance from the ECB may be forthcoming
For next Thursday, 12 December European Central Bank (ECB) monetary policy outcome, market participants are likely to expect a 25-basis point (bps) cut rather than a more aggressive reduction of 50 bps based on short-term interest rate futures pricing. If such a scenario occurs, it will be the fourth interest rate cut in the Eurozone since June to lower the key deposit rate further to 3%. Hence, it will be paramount to scrutinize the latest ECB’s forward monetary policy guidance for hints of further and or more aggressive monetary policy stance in 2025 via its latest macroeconomic projections which are released ... (full story)